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HBR On Strategy

How to Build — and Maintain — Relationships with Your Shareholders

Feb 21, 2024
Former IBM CEO Sam Palmisano discusses the importance of establishing relationships with shareholders before issues arise. He emphasizes the value of long-term projections over quarterly outlooks, focusing on communicating a clear strategy to investors. Palmisano shares insights on navigating Wall Street, engaging with shareholders, and the impact of hedge fund activists on capital allocation decisions.
13:41

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Podcast summary created with Snipd AI

Quick takeaways

  • Building relationships with shareholders before addressing problems fosters long-term focus.
  • CEOs should be receptive to activists focusing on capital allocation to create value.

Deep dives

Building relationships with shareholders

Former IBM CEO Sam Palmasano emphasizes the importance of building relationships with shareholders before addressing specific problems. He offered detailed multi-year projections of revenue growth to keep the company focused on the longer term.

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